For estate planning, there are certain things which a person must be aware of, so that the process of planning becomes little easier. Estate planning is all about making few decisions and getting things organized a bit. First of all, list the things that you need to do initially.
Making and executing the will is the first step towards estate planning. A will is executed to give directions after your death as to how your assets will be utilized, and who will be the beneficiaries. The will has certain important inclusions also, like instructions related to your personal aim, regarding minor children and about naming of the guardian for them. It also gives information on how you would like your earthly remains to be treated after you pass away.
Revocable living trust is another step. Those who have their own real estate must consider making a trust. Trusts reduce misconception and transfer of titles and deeds. The next important aspect is the directives regarding health care. These guidelines and directives will enable your descendants and care takers to completely understand your desires regarding assets and the end of life care. Often the term living will is taken as health care directives or as power of attorney. Power of attorney allows a trusted person to take care and maintain the financial estate.
Assets that need not be part of the probate process also need to be considered. This implies that a beneficiary can be named for certain items and things in order to avoid probate. Such as bank accounts, stock brokerage accounts, life insurance, annuities and retirement accounts like IRA are included in this.
Estate planning also includes things like calculating estate taxes and probate costs. Sometimes estate taxes can require liquidity of few of your asset. Life insurance comes handy in solving this issue. Funeral costs and safe storage are other factors one must take into account.
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